Using buy signals to time investments – 50-plus shares signalled from the QV portfolio
The chart above is of an ETF stuffed with high-flying technology shares. They had a brilliant lockdown but have since been hit by a wave of profit-taking. As you can see from the chart above the move from peak to trough in some three months was over 26pc. Back in the day they would have called this a bear market. Since then the market has been trying to rally, which fits in with the pattern established since 2009 of a long-running secular bull market interrupted by setbacks which typically last around three months, albeit that they may turn into longer periods of consolidation.
I have chosen OGIG because it is almost a proxy for the Quentinvest for Shares portfolio. It’s composition is different to that of indices like the Nasdaq 100 which are technology-rich but have other kinds of shares including those in slower growing businesses that never make it into the QV portfolio.
The setback was triggered by a sharp rise in US long-dated bond yields, which was itself triggered by expectations that a successful vaccination programme would lead to a sharp rebound in economic activity, which might lead to higher inflation and interest rates. I don’t especially think it will but whoever knows.
My over-riding impression is that the secular bull market is intact. The technology revolution is still happening, probably at an accelerating rate. I expect the shares which have dominated the bull market to date to continue to perform well. What we are seeing at the moment is shares crouching to spring, which is why I am continuing to make recommendations. QV is a win in the end strategy. In order to win we need to stay in the game.
I have decided I am not going to be too slavish in following buy signals. This is partly to keep the numbers manageable and partly because despite a fairly strong showing by the indices the stock market still feels convalescent rather than roaring ahead. If the indices and individual shares really start to break higher I will probably become more aggressive.
Below are some 50 shares which have given buy signals based on breakouts, monthly moving averages (programmatic) and buying the green (a green candlestick either after a red or after another green).
Applied Materials/ AMAT. Buy @ $139
Arista Networks/ ANET Buy @ $349
Ashtead/ AHT Buy @ 5200p
Berkshire Hathaway B/ BRK.B Buy @ $291
Brunello Cucinelli./ BC Buy @ $48.96
Carl Zeiss Meditec/ AFX Buy @ $149
Cloudshare/ NET Buy @ $83
Corporate Travel Management/ CTD Buy @ A$21.99
Croda International/ CRDA. Buy @ 6968p
Dechra Pharmaceuticals/ DPH. Buy @ 4156p
Diageo/ DGE. Buy @ 3396p
Diploma/ DPLM. Buy @ 2896p
Domo Inc. DOMO. Buy @ $66.50
Dropbox/ DBX. Buy @ $28.50
Fortinet/ FTNT. Buy @ $219.50
Gamestop/ GME Buy @ $254
Games Workshop/ GAW Buy @ 11,900p
Genscript Biotech/ 1548. Buy @ HK$31.15
Halma/ HLMA. Buy @ 2640p
HelloFresh/ HFG. Buy @ Euro80.16
IDEXX Laboratories/ IDXX. Buy @ $557
I-mab Laboratories/ IMAB Buy @ $78
Intuit/ INTU. Buy @ $458
JD Sports/ JD. Buy @ 934p
Lam Research Corp/ LRCX. Buy @ $652
Li Auto/ LI $25.50
Logitech International/ LOGI. Buy @ $132.5
L’Oreal/ OR. Buy @ Euro376
Meidon Auto/ 1268. Buy @ HK$41.40
Nasdaq Inc./ NDAQ. Buy @ $168
Netease/ NTES Buy @ $114
Nvidia/ NVDA. Buy @ $704
Pool Corporation/ POOL. Buy @ $434
Progeny Corporation/ PGNY. Buy @ $62.50
Prologis/ PLD. Buy @ $121
Roblox/ RBLX. Buy @ $102.95
S4 Capital/ SFOR. Buy @ 587p
Salesforce.com/ CRM. Buy @ $235
S&P 500 ETF/ SPY. Buy @ $421
Spirax-Sarco/ SPX. Buy @ 12,945
Up Fintech Holdings/ TIGR Buy @ $27.52
Upstart Holdings/ UPST. Buy @ $179.50
Veeva Systems/ VEEV. Buy @ $286
West Pharmaceutical Servicls/ WST. Buy @ $333
Wuxi Bio/ 2269. Buy @ HK$121
YouGov/ YOU. Buy @ 1110p
Zai Laboratories/ ZAI. Buy @ $172
Zebra Techronologies/ ZBRA. Buy @ $514
Zoom Video Technologies/ ZM. Buy @ $338
My count for the recommendations above is 50. It would have been more on a more literal interpretation of all the buy signals given by breakouts, the moving average and buying the green. This means there is a considerable element of judgment in the selections. Hopefully that is a good thing. As always I favour shares showing strength.